How to export electronic goods from Indonesia

Indonesia's prowess in the electronic industry is undeniable, with electrical machinery and electronics exports reaching US$20.5 billion in 2023, making it the 25th largest exporter globally and the 4th most exported product from the country¹. This remarkable growth signals immense global opportunities for Indonesian businesses.

However, successfully exporting electronic goods involves navigating complex regulations, ensuring proper packaging for shipping, and managing diverse international requirements.

In this guide, we’ll examine the essential steps in the export process, including regulations and tips for ensuring efficient and compliant international shipments.

Understanding export regulations for electronics in Indonesia

Learning about export regulations is the first critical step for any business looking to send goods from Indonesia. The export procedure typically commences with a clear sales contract between the exporter and the importer. This agreement outlines the terms of payment, which can range from secure methods, such as a Letter of Credit (L/C), to more direct non-L/C arrangements.

However, beyond the commercial agreement, specific governmental requirements govern the entire export procedure.

Key export procedures for electronic goods

To legally export electronic goods from Indonesia, businesses must first ensure they are properly registered and licensed. The process involves several key steps and requires interaction with relevant government bodies:

• Obtain a Nomor Identitas Kepabeanan (NIK): This is a crucial customs registration number issued by the Directorate General of Customs and Excise, which falls under the Ministry of Finance of Indonesia. It is mandatory for any individual or company seeking to exercise their customs-related rights.
• Get a Nomor Pokok Wajib Pajak (NPWP): Issued by the Ministry of Finance of Indonesia, this number serves as a personal identification for your business when fulfilling tax obligations.
• Attain a Surat Izin Usaha Perdagangan (SIUP): You must secure one of the essential licenses, such as a Trade License (Surat Izin Usaha Perdagangan or SIUP), issued by the Ministry of Trade. For certain products or business types, other licenses (e.g., Industrial License from the Ministry of Industry) may also be required.
• Register for a Nomor Induk Berusaha (NIB): This business entity identification, along with a unique 13-digit serial number, can be obtained through the Online Single Submission (OSS) System. The NIB streamlines the application for various business and commercial licenses.

These initial steps are vital groundwork for any aspiring exporter in Indonesia. Once you’ve secured your license, you can prepare the list of documents for your shipment.

Essential documentation for electronic exports

To ensure a seamless shipping process for your electronic goods, it’s essential to have accurate and complete export documentation. After all, these documents play a vital role in customs clearance, ensuring your shipment reaches its destination without delay.

Here are the critical documents required:

• Certificate of Origin (COO): Obtained from the Indonesian Chamber of Commerce and Industry (KADIN), this document verifies the country of origin of your product, indicating where it was manufactured, produced, or processed. It can also help qualify your goods for preferential tariffs under Free Trade Agreements.
• Packing List: This document details the contents of your shipment, including dimensions, weight, and the necessary storage and handling instructions during transport.
• Commercial Invoice for Export: Created by the exporter for the buyer, this mandatory document outlines the goods, their cost breakdown, Harmonized System (HS) codes, terms of sale, insurance, and country of origin.
• Bill of Lading / Air Waybill (AWB): This is a legal document issued by the logistics company that details the type, amount, and destination of the goods, serving as a contract of carriage.
• Pemberitahuan Ekspor Barang (PEB): This customs export declaration is submitted to the Directorate General of Customs and Excise to obtain final approval for exporting electronic products.

The advantage of being a reputable exporter

After laying the groundwork by understanding the necessary licenses and documentation for your export procedure, consider taking it a step further and registering as a reputable exporter.

But first, what are the benefits of having a reputable exporter status?

Benefits of reputable exporter status

Becoming a "reputable exporter" in Indonesia signifies that your business consistently meets and exceeds export regulations and compliance standards². This esteemed status, recognized by the Ministry of Trade (MoT), brings substantial advantages.

For instance, reputable exporters often benefit from instant approval of business licenses, streamlining bureaucratic processes. Beyond exporting electronic goods, this status can be a game-changer if you venture into other commodities, as it automatically approves the export shipment of nine specific types of goods, including various types of rice, natural plants, and animal products.

This recognition leads to a smoother customs administration process, fewer inspections, faster transit times, and potentially reduced shipping costs. Consequently, you can enhance the overall efficiency and profitability of your export procedure.

How to achieve reputable exporter status

Achieving reputable exporter status in Indonesia requires consistent adherence to specific export regulations and industry best practices. The Ministry of Trade (MoT) outlines clear criteria for businesses seeking this recognition³.

Key steps and qualifications include:

• Valid Taxpayer Status: Your business must be a valid taxpayer for the last two years, a status confirmed by the Ministry of Finance.
• Consistent Export Activity: You must have actively carried out the export of goods in the previous two years, aligning with your registered line of business.
• Fulfillment of Reporting Obligations: You should have also consistently reported on the realization of all exports undertaken for every commodity.
• Clean Compliance Record: Your business must never have been subject to administrative or criminal sanctions due to violations of export regulations.

Overcoming challenges in electronic goods export

Exporting electronic goods from Indonesia to international markets presents unique hurdles that businesses must skillfully navigate. One primary challenge is ensuring strict compliance with the diverse import regulations of various destination countries. After all, these rules can differ significantly, requiring meticulous research and adherence to avoid customs delays or penalties.

Furthermore, it’s crucial to manage specialized packaging requirements for sensitive electronics. As such, you need to invest in proper packaging for shipping, not only to protect your goods but also to meet specific industry standards.

At the same time, businesses face the critical task of ensuring that shipment value declarations are consistently accurate to prevent customs issues and potential fines. Lastly, maintaining robust tracking and visibility for high-value electronic shipments across their entire international journey is essential for security and customer confidence.

Partnering with DHL Express for electronic goods export

Given the immense global demand, Indonesian businesses have vast opportunities to expand their reach in the thriving electronic industry. While challenges like complex import regulations, specialized packaging requirements, and the need for reliable tracking and visibility may seem daunting, partnering with the right logistics provider can turn these hurdles into stepping stones.

DHL Express stands as a trusted international courier and international logistics partner in Indonesia, equipped to simplify your export procedure. We offer expertise in navigating intricate customs clearance for electronics, guidance on proper packaging for shipping sensitive items, and advanced shipment tracking for real-time peace of mind.

Open a DHL Express business account today to ensure your high-value electronic shipments are delivered overseas efficiently and reliably.